Title: Tourism – Cover paper Author: Paul Witcombe, Enterprise and Innovation Manager Email: Paul.Witcombe@hertfordshirelep.co.uk Date 24th July 2014 Item 4: 1. Purpose To introduce a proposal from the Hertfordshire Chamber of Commerce and Industry in response to the findings of a LEP, County Council and Hertfordshire Local Tourism Partnership commissioned review of Tourism in the county. 2. Recommendation The board is asked to consider and accept or decline the proposal from Hertfordshire Chamber of Commerce and Industry to implement a Destination Management Service for Hertfordshire. 3. Background Tourism is a thriving sector that brings considerable revenue to the Hertfordshire economy; £2.06 billion annually based on research data published in 2010. Since 2002, the development of tourism in Hertfordshire has been overseen by the Hertfordshire Tourism & Leisure Partnership (HTLP), chaired by the County Chamber and comprising the main visitor attractions and industry professionals. Following an independent review of tourism and a decision by the County Council to reduce its expenditure on tourism activities from 2014, The LEP and HCC have asked the Chamber of Commerce to come forward with proposals to introduce a new, self-sustaining model for the development of tourism in Hertfordshire.

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THE VISITOR ECONOMY IN HERTFORDSHIRE A PROPOSAL FOR THE STRATEGIC MANAGEMENT OF TOURISM IN HERTFORDSHIRE INTRODUCTION Hertfordshire Chamber of Commerce successfully set up the Hertfordshire Tourism Partnership, and since that time has continuously championed Tourism for Hertfordshire and its businesses which operate in the Tourism, Visitor Attraction and Cultural sector. The partnership has achieved outstanding and significant results drawing together a pan-county approach to Tourism. The new approach for the Destination Management Strategy, when driven and led by Hertfordshire Chamber of Commerce will result in a significant increase in activity, growth of jobs and growth of GVA in this sector for Hertfordshire. Hertfordshire contains a large number of high level attractions and tourism destinations ranging from Warner Bros Studios; Paradise Wildlife Park; Lea Valley Regional Park and the White Water Canoeing Centre; the Henry Moore Foundation, Hatfield and Knebworth Houses, Roman Verulanium through to outstanding countryside. However the offer for Hertfordshire now needs a concerted joined up effort to build visitor numbers in the county in the face of competition from other strong offerings both home and overseas. Utilising its own resources over the last 13 years the Chamber has launched and delivered a Tourism Forum, which brought business together to share best practice; devised the „Enjoy Herts‟ campaign; launched and delivered the „Hertfordshire Times; initiative; and housed a seconded Tourism Officer within its central team. The Chamber additionally has strong links into the creative industries, the health & wellbeing sector, and excellent links to International Trade services though both UKTI and the worldwide network of British Chambers overseas. It is the preeminent businesses representative organisation in the county, and can uniquely leverage relationships with key stakeholders. The Chamber is the organisation with the unique experience, knowledge, contacts, vision and drive to make the step change happen. The Chamber will lever it extensive contact network of local businesses, use its position as the only accredited chamber in the county to interact with and share and adopt best practice form across the country. The chamber can also use its unique linkages to lobby for the business growth that this sector can provide. The Chamber is the organisation best placed to drive forward the Tourism Agenda for future prosperity within Hertfordshire.

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1. SUMMARY

1.1 The Hertfordshire Chamber of Commerce is confident that it is best placed to take tourism in Hertfordshire forward to become a sustainable well-resourced partnership and drive inbound tourism for both business and leisure, increase visitor stays and spend and grow local jobs and GVA by 3% p.a. in this sector.

1.2 Hertfordshire‟s tourism and leisure industry has a crucial role to play in

helping the Hertfordshire LEP achieve its vision to become on the UK‟s leading economies by 2030. It clearly supports two of the LEP‟s priorities:

Harnessing our relationships with London and elsewhere

Re-invigorating our places for the 21st Century 1.3 Having chaired the current Tourism Partnership over the last thirteen

years, the Chamber has established networks and relationships with the Hertfordshire tourism and leisure sector locally and at national level, with Visit Britain and Visit England. Hertfordshire Chamber of Commerce feel we are perfectly placed to take the new Destination Management Approach forward thorough the creating and development of Visit Hertfordshire Ltd.

1.4 Hertfordshire Chamber of Commerce has already conducted dialogue with over 25 key stakeholders from across the county regarding this new approach who have indicated their support, many in writing.

1.5 Hertfordshire Chamber of Commerce is ready now to drive tourism forward and to implement the Visit Hertfordshire solution, utilising interim staff if necessary.

1.6 Hertfordshire Chamber of Commerce has devised and will deliver a

sustainable self-funding model by year 3 of operation for Visit Hertfordshire Ltd, with any surpluses reinvested in driving forward the Culture, Leisure and Visitor Tourism sector across Hertfordshire.

1.7 Hertfordshire Chamber of Commerce already has embedded

relationship with key stakeholders associated with the Hertfordshire Tourism offer such as Airports and Transport providers; major attractions; key cultural attractions; and hotel and accommodation providers, therefore can immediately impact in driving the Tourism Agenda forward for Hertfordshire.

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2. A NEW APPROACH FOR HERTFORDSHIRE 2.1 The Hertfordshire Chamber of Commerce and Industry fully supports

the recommendations of the Destination Management review and believes there is significant potential to develop the Visitor Economy of Hertfordshire to support the LEP‟s strategic economic objectives of economic growth.

2.2 The Chamber believes it is best placed to take forward this agenda building on some of the strengths and refocusing the existing Tourism and Leisure Partnership, and harnessing the contacts that it has already.

2.3 The Chamber believes that by incorporating Cultural Tourism into the

core of the Hertfordshire Tourism offer alongside Visitor Tourism and Business Tourism will create a uniquely strong offer, which will build the GVA and grow jobs within this sector in Hertfordshire. One way in which this will be enabled is to add value by maximising local supply chains and promoting local products to visitors.

2.4 Following discussions with the Hertfordshire LEP and HCC, the Chamber is offering to establish a fresh Destination Management Approach for Hertfordshire. Hertfordshire Chamber of Commerce is proposing to set up a new vehicle‟ Visit Hertfordshire Ltd‟, as a wholly owned subsidiary of Hertfordshire Chamber of Commerce Ltd, with its own independent board. It is envisaged that funding will be required to ensure that Visit Hertfordshire Ltd delivers a significant impact in driving inbound business and leisure tourism into Hertfordshire that will result in a significant increase in the GVA of Hertfordshire.

2.5 The new Visit Hertfordshire Ltd will be governed by a Board chaired by

a private sector representative of the Tourism and Visitor management sector. The board will be made up of representatives with significant expertise of the tourism and visitor management sector, and other partners who have a key role in creating the right environment for successful Destination Management and developing the Cultural, Business and Visitor Economy.

2.6 It is suggested the Board of Visit Hertfordshire Ltd comprises with

suggested relevant individuals in brackets:

- Hertfordshire Hoteliers Association (Richard Marrett, Chair/Eric Snell, Vice Chair)

- Representatives of Cultural and Arts Attractions (Lesley Wake, COO The Henry Moore Foundation/Mathew Bean, Watford Place Theatre/Nick Denham, Creative Hertfordshire)

- Representatives of the Visitor Attractions in Hertfordshire (Andrew Wolfe, Willows Farm/Sean Dawson, LVRPA/Sarah Roots, Warner Bros)

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- Chief Executive of Hertfordshire Chamber of Commerce and Industry (Yolanda Rugg)

- Representative of LEP Board (Dan Dark) Executive Member Enterprise Hertfordshire County Council (Chris Hayward)

- Representatives of Hertfordshire District and Borough Councils (Greg MacDonald, Chair HEDOG/Maria Cutler, St Albans/ Rebecca Oblein, Dacorum)

- University of Hertfordshire Conference Management (Celeste Jones, Head of Faculty)

- College of Further Education / UTC Hospitality Skills (Robin Hindley, Director of Enterprise West Herts College/Andy Forbes, HRC/Hazel Lodge NHC)

- Representative of Hertfordshire Town Centre Managers (Maria Marion Watford/Keith Hoskins HTCI)

The Board will give their time on a voluntary basis. The Company will be managed in accordance with English Company Law and an AGM will be held annually and the Chair will be voted in every 2 years. A Chair will be elected at the first board meeting, which is envisaged to happen 1 month after the confirmation of the funding. The proposed terms of reference of the Board of Visit Hertfordshire Ltd will be:

To take forward the recommendations of the Destination Management Plan for Hertfordshire, establish clear priorities and performance indicators and evaluate impact and effectiveness of the strategy.

To build a strong Destination Management Partnership for Hertfordshire that is sustainable and self financing.

To ensure effective communications with key partners and stakeholders nationally and locally.

To ensure Hertfordshire has a strong recognisable Culture, Tourism and Visitor Management brand, that is used consistently and confidently by all partners.

To raise the profile of Hertfordshire and its cultural, heritage and countryside assets and visitor attractions to help stimulate leisure and business visits (particularly from London), and increase the economic benefits for Hertfordshire.

Strategically guide the activities of Visit Hertfordshire Ltd. 2.7 The Board of Visit Hertfordshire Ltd. is likely to need to establish a

series of sub groups to take forward key themes of the Destination Management Plan over time with Members of the Board leading on key aspects.

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2.8 It is also proposed to establish a wider Tourism Forum to act as a reference group for the Board and Visit Hertfordshire Ltd. This forum will be open to all tourism, culture and leisure related businesses in Hertfordshire, local authorities, transport operators, education providers, local attractions, accommodation providers, and it is envisaged most will become members and pay an annual subscription as set out on Page 9. The Forum will meet twice a year to enable the Board of Visit Hertfordshire Ltd. to report on its activities and progress and establish two way feedback on priorities and issues. Supporting this will be online forums in the members section of the website and regular e-newsletters and social media updates.

2.9 The Board of Visit Hertfordshire Ltd will ensure it maintains

particular links to the LEP Board and Hertfordshire County Council as the Boards core pump-priming funders. A progress report will be submitted to the LEP Board and the relevant HCC Committee twice a year in order to ensure core pump-priming funders are content with the work of the partnership as it progresses.

2:10 The Destination Management Strategy will provide the overarching

framework for the work and priorities of the new partnership. 2.11 Whilst the Chamber will host Visit Hertfordshire Ltd as a wholly

owned subsidiary, it will needed to be supported by a small executive team with expertise in Destination Management. The team will comprise:

An Executive Director responsible for providing advice and guidance to the Board on strategic direction, delivery of agreed priorities and actions on behalf of the Board, building links and partnerships nationally and locally across all sectors securing funds. The Executive Director will need to have a strong track record in the Destination Management/Tourism/Marketing Sectors. This will be a part time post and recruitment to this post will be one of the first priorities of the new Destination Management Partnership. Estimated salary £50,000 per annum-part time pro rata to £30,000 for 2.5 days per week, plus additional costs.

A part time Marketing and Communications Officer to drive campaigns and engagement, and to ensure full social media presence of Visit Hertfordshire and its Tourism offers. Estimated salary cost £30,000 per annum pro rata to £18,000 for 3 days per week, plus additional costs.

A full time Tourism Projects Officer to work on key projects. Estimated salary £20,000 per annum, plus additional costs.

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2.12 The Executive team will be recruited employed, and line managed on fixed term contracts by the Hertfordshire Chamber of Commerce. Operational and financial reporting will be board of Hertfordshire Chamber of Commerce, however the work will be directed strategically by the board of Visit Hertfordshire Ltd.

2.13 Ensuring future funding and sustainability for Visit Hertfordshire Ltd.

will be a key priority for the Board, and the officers. Once established, Visit Hertfordshire Ltd will seek to secure financial contributions from business connected to the Tourism, Visitor Management, Leisure and Cultural sectors, hoteliers, attractions, Local Authorities, etc. Membership fees will provide some business support and marketing for small businesses. However participation in any marketing campaigns, attendance at events/exhibitions will be charged for separately to provide an income stream for the Partnership. A suggested „rate card‟ for membership is attached in Page 9 and is based up the charges levied in other parts of the country. A plan of how the membership and income will grow is laid out on Page 10.

2.14 The aim will be to become self-financing two years after Visit

Hertfordshire Ltd is set up, through income from membership subscriptions, campaigns, events, sponsorship and seeking funding from other sources including EU. A Budgeted Profit & Loss Account to show how this is envisaged to work in set out on Page 12.

2.15 Hertfordshire Chamber of Commerce has already begun

consultations with its existing Cultural, Tourism and Leisure contacts and support has been forthcoming from all regarding the new proposed approach. Some are already verbally indicating their willingness to support this approach financially, however Hertfordshire County Council and Hertfordshire LEP now need to kick start the process with pump priming funding.

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3. THE WAY FORWARD 3.1 Hertfordshire County Council and the LEP have indicated verbally

that they are supportive of this proposal, there is a need for the Chamber to have broader discussions with the current Tourism and Leisure Partnership and other partners to establish support and commitment. The Chamber will then be able to develop a business case and identify future risks before moving forward. Guarantees will also be needed from Hertfordshire County Council and the Hertfordshire LEP about funding before proceeding.

3.2 Assuming Visit Hertfordshire Ltd is granted the pump-prime

funding, the aim will be to set up the first meeting of the board by September 2014. The first task of the board will be to elect a Chair and recruit the Executive team by September/October 2014. Over the summer the board will need to establish an Action Plan for the year ahead. It is proposed to formally launch the new Partnership in autumn 2014 to a wider Tourism Forum. Recruitment of members will commence as soon as the guarantees have been granted.

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4. TIMESCALES-1st year.

July 2014: Hertfordshire Chamber of Commerce Proposal Submitted to HCC & LEP Proposal accepted by HCC and LEP and a contract/MOU drawn up. Visit Hertfordshire Ltd registered and Web Domains purchased. Holding page put up redirecting to existing LEP website. Invitations sent out to prospective board members.

August 2014 Initial funding tranche paid over to Herts Chamber of Commerce Recruitment Process for Exec Director commenced. Chamber staff begin recruitment of members, starting with Local Authorities

Sept 2014 1st Board meeting of Visit Hertfordshire Ltd and election of the first chair. Interviews and selection of Exec Director. Recruitment Process for Marketing & Comms Officer commenced Chamber staff continue with recruitment of LADs.

Oct 2014

Exec Director starts work (assuming 1 months‟ notice in previous role. Interviews and selection of Marketing & Comms Officer. Audit of past/previous tourism support activity in Hertfordshire, producing a report on what has worked well/what has not and why. Taking forward of previously stalled projects such as the Hertfordshire Film Industry A-Z. Work on new website commences in earnest. Marketing and Comms officer commences planning for presence and collateral for spring 2015 Tourism Conferences (BOBI/Confex)

Nov 2014 Submission of first quarterly report to HCC & LEP (Investment and Advocacy Programme Board) Second funding tranche paid over. Selection of designers for new Visit Hertfordshire Website. Marketing & Comms Officer starts work Recruitment & selection of Tourism Projects Officer Commencement of recruitment of other membership categories

Dec 2014 2nd Board Meeting of Visit Hertfordshire Ltd

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Tourism Projects Officer starts work Ongoing recruitment of members

Jan 2015

Beta website shown to Board and wider Tourism partnership at first Partnership Event. Ongoing recruitment of members

Feb 2015 Submission of second quarterly report to HCC & LEP (Investment and Advocacy Programme Board) Third funding tranche paid over Launch of new Website Ongoing recruitment of members Confex (18 & 19.2.15)

March 2015 BOBI (11 & 12.3.15) May 2015

Submission of third quarterly report to HCC & LEP (Investment and Advocacy Programme Board) Fourth funding tranche paid over.

July 2015 2nd Tourism Partnership Event, a flagship event with high profile speakers (ideally the Secretary for Culture, Media and Sport, currently Sajid Javid and major industry speakers such as Kel Ryan, founder of Ryanair)

Beyond July 2015 Visit Hertfordshire Ltd delivering a high impact Tourism offers for Hertfordshire.

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Proposed Membership Rates p.a.

classification membership rate

Membership Income

LADs (Average income) £5,000.00

Cultural/Visitor Attractions

Small <50K visitors £250.00

Med 50-200K visitors £500.00

Lge >200K visitors £2,000.00

Accommodation

B&B, small hotel £100.00

Med hotel (25-50 rooms) £250.00

Large hotel (>50 rooms) £500.00

Pubs & Restaurants £100.00

Transport Providers £5,000.00

Other major bodies (UH/FE/Major Retail Centres/Leisure Parks etc.)

£5,000.00

The above rates have been derived from looking at similar Tourism Membership organisations and setting the rates accordingly.

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Appendix 4 – Membership income projections

classification membership rate no yr1 inc yr1 no yr 2 inc yr 2 no yr 3 inc yr3 no yr 4 inc yr 4 no yr5 inc yr5

Membership Income

LADs (Average income) £5,000 5 £25,000 6 £30,000 8 £40,000 9 £45,000 10 £50,000

Cultural/Visitor Attractions

Small <50K visitors £250 3 £750 8 £2,000 30 £7,500 40 £10,000 50 £12,500

Med 50-200K visitors £500 2 £1,000 5 £2,500 20 £10,000 25 £12,500 30 £15,000

Lge >200K visitors £2,000 1 £2,000 2 £4,000 5 £10,000 7 £14,000 9 £18,000

Accommodation

B&B, small hotel £100 3 £300 8 £800 30 £3,000 50 £5,000 60 £6,000

Med hotel (25-50 rooms) £250 2 £500 5 £1,250 20 £5,000 25 £6,250 30 £7,500

Large hotel (>50 rooms) £500 1 £500 4 £2,000 10 £5,000 12 £6,000 14 £7,000

Pubs & Restaurants £100 12 £1,200 20 £2,000 80 £8,000 120 £12,000 160 £16,000

Transport Providers £5,000 1 £5,000 2 £10,000 4 £20,000 4 £20,000 4 £20,000

other major bodies (UH/FE/Major Retail Centres/Leisure Parks etc.) £5,000 1 £5,000 2 £10,000 7 £35,000 8 £40,000 9 £45,000

LEP/HCC £100,000 £100,000

Project Funding (EU, etc.) £50,000 £50,000 £50,000

Campaigns/Events/Exhib £10,000 £15,000 £20,000 £20,000

Total Income £141,250 £174,550 £208,500 £240,750 £267,000

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Profit & Loss Projections

INCOME £141,250.00 £174,550.00 £208,500.00 £240,750.00 £267,000.00

EXPENDITURE

Executive Director (2.5 days/week) £25,000.00 £25,500.00 £26,010.00 £26,530.20 £27,060.80

Employers NI £2,387.95 £2,456.95 £2,527.33 £2,599.12 £2,672.34

Pension costs £1,250.00 £1,275.00 £1,300.50 £1,326.51 £1,353.04

Other expenses £2,500.00 £2,550.00 £2,601.00 £2,653.02 £2,706.08

Marketing & Communications Officer (3 days/week) £18,000.00 £18,000.00 £18,000.00 £18,000.00 £18,000.00

Employers NI £1,421.95 £1,421.95 £1,421.95 £1,421.95 £1,421.95

Pension costs £900.00 £900.00 £900.00 £900.00 £900.00

Other expenses £1,800.00 £1,800.00 £1,800.00 £1,800.00 £1,800.00

Tourism Projects Officer (after 3 months) £15,000.00 £20,000.00 £20,400.00 £20,808.00 £21,224.16

Employers NI £1,007.95 £1,697.95 £1,753.15 £1,809.46 £1,866.89

Pension costs £450.00 £600.00 £612.00 £624.24 £636.72

Other expenses £1,500.00 £2,000.00 £2,040.00 £2,080.80 £2,122.42

Apprentice/Intern £10,000.00 £10,200.00 £10,404.00 £10,612.08

Employers NI £317.95 £345.55 £373.70 £402.42

Pension Costs £3,000.00 £3,060.00 £3,121.20 £3,183.62

Other Expenses £1,000.00 £1,020.00 £1,040.40 £1,092.42

Travel and entertaining £5,000.00 £5,250.00 £5,512.50 £5,788.13 £6,077.53

Marketing Campaigns £35,000.00 £40,000.00 £40,000.00 £65,000.00 £75,000.00

Project Deliver Expenditure £40,000.00 £40,000.00 £40,000.00

Campaign/Events/Exhib exp £4,000.00 £6,000.00 £10,000.00 £10,000.00

IT - software and web hosting £16,000.00 £16,300.00 £6,615.00 £6,945.75 £17,293.04

Telephone £1,000.00 £1,050.00 £1,102.50 £1,157.63 £1,215.51

Postage £1,000.00 £1,050.00 £1,102.50 £1,157.63 £1,215.51

Accountancy £6,000.00 £6,300.00 £6,615.00 £6,945.75 £7,293.04

Contingeny Costs £5,000.00 £5,250.00 £5,512.50 £5,788.13 £6,077.53

TOTAL EXPENSES £140,217.86 £171,719.81 £206,451.49 £238,275.61 £261,227.10

SURPLUS/DEFECIT £1,032.14 £2,830.19 £2,048.51 £2,474.39 £5,772.90

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Commentary on Income Projections: The prices charged have been compared to what is charged by other neighbouring areas such as Essex, however simplifying and undercutting the Essex offering. The amount to be charged to Local Authorities is based upon an average, although one LAD has already committed £10,000 verbally. Because the model of charging different businesses, attractions and providers is new to Hertfordshire and the lag taken to recruit staff who will be charged with recruiting the member businesses, the sign up rates will be gradual initially. Many of the businesses will be sceptical and will take time to buy into the concept and have to see the benefits that the new Visit Hertfordshire Ltd tourism offer before becoming members. The model also leverages funding from transport providers such as rail and airport providers. The Visit Anglia initiative is funded partially by substantial funding from their train provider, Abelio Greater Anglia. In addition to railways the two closely neighbouring airport facilities have been identified to subscribe. There are other organisations based in Hertfordshire who will be targeted to be members of Visit Hertfordshire. These include educational establishments including the University of Hertfordshire, FE Colleges who provide skills training for Tourism based businesses, retail leisure centres.

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Commentary on Profit & Loss Projections: The staff will be employed on the same terms and conditions as other Chamber staff, though on fixed term contracts initially. This means that pension, healthcare provision, etc. as offered to Chamber staff must be added to salaries. The marketing expenses will build as the offer expands and more members come on board. Key to the success of Visit Hertfordshire Ltd will be its web presence. £10,000 is budgeted in each of the first two years for building and developing a new website, with a further £10,000 in year 5 for a refresh, which will constantly be required to ensure that it is at the leading edge. The project expenses are budgeted at 80% of the project income, which is in line with normal project management. The remaining 20% will contribute to staff expenditure. A small surplus is budgeted for, but this can be reinvested in a special project which may arise in the future. Hertfordshire Chamber of Commerce will provide office space, desks etc. to the Visit Hertfordshire staff, and the support of their back office functions such as bookkeeping. Hertfordshire Chamber of Commerce already has extensive expertise in the field of events management and will support Visit Hertfordshire Ltd in this field. The Exec Director will line manage the Visit Hertfordshire staff, and in turn be line managed by the Hertfordshire Chamber of Commerce.

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SWOT of Current Hertfordshire Tourism Offer Strengths

Transport links-airports, rail & roads

Accessibility

Proximity to London

Good stock of high quality attractions

Good stock of quality hotels

Extensive expertise in the field of Business, Leisure and Cultural tourism from both private and government sector ( Board chaired by private sector representatives)

Strong National relationship with Herts Tourism and Leisure Sector Industry: Visit Britain

Support from 25+ key stakeholders (private & public sector)

Diverse local visitor experiences, locally produced, locally manufactured and local traditions

some of the districts already have visitor strategy/ resource

diversity of product mix across heritage/innovation/ creative industries/culture (something for all)

steeped in heritage across county but not fully optimised yet

Weaknesses

Not traditionally seen as a tourism destination

Has not been well marketed in the past

Small stock of self-catering, B&B type accommodation.

The „Hertfordshire Offer‟ is undefined (Cornwall is beaches, surf and plenty to do on an unpleasant day; The Cotswolds is Chocolate Box hamstone Villages, The Lake District is lakes, mountains and Beatrix Potter). What is Hertfordshire‟s USP?

Uncoordinated approach on Transportation links on how to get around Hertfordshire – more walking and cycling opportunities to get from one attraction to the other.

Cost deters visitors - special seasonal offers

Investment in new state of the art technology required

Lack of business tourism/conference and events strategy to drive inbound business

Relatively low public sector funding compared to other counties i.e. Kent Yorkshire

Lack of large conference and event facilities for over 300 delegates;

Little coordination of social media publicity or central hub

Opportunities

New markets-e.g. China, Russia, etc.

The simple fact that Tourism has never been a big sell for the County, so things can only get better.

A great weekend away from London!

Potential quality conference destination next to London

Countryside an untapped gem

Great historical offer

The offering is to a high quality discerning clientele, who have disposable income.

Investment in Technology, social media to stay ahead of our competitors

Strong Public relationship links with key celebrities – stories of Beckham, Lewis Hamilton, etc.

To grow local employment within the tourism sector – enhance perception of tourism qualifications and value of industry

Increase visitor stays target two night stays and offers, weddings a success in Hertfordshire venues enhance with the entire experience from day before to day after (2 night stay)

Harness relationship with London destinations and transportation hubs

bring all districts together and create strong brand

Drive more high quality sports events from cycling to elite canoeing etc. to swell visitor numbers; sponsorship, and investment

Create strong identity and multiple branded packages for tourism and leisure sector

Many other counties have tried and tested models which we can develop best in class form

Visit Britain stats estimate 5% year on year growth to local economy

Threats

Everyone else is going after the same market

The longer there is procrastination the further forward the competition goes- national & international

Strong £ v. $ & €

Business scepticism and time in relation to signing new members

Key funding from larger sectors of the business – train and airport

Deficit of skills in the customer service industry

Perception of the Tourism Industry

Perceived lack of support for start-up businesses in tourism sector

Lack of public/ private investor support

Risk to sustainability

More funding into other destinations competing for market share

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Key Stakeholders engaged as Supporters

Name of Supporter spoken to face to face

Venue/Attraction

Lord Salisbury Hatfield House

Sean Dawson LVRPA

Lynn Whitnall/Sarah Lebenz Paradise Wildlife Park

Mike Nevin De Havilland Aircraft Museum

Linda Dobbs Welwyn & Hatfield Museum

Barry Webber Stevenage Borough FC

Jane Munns HCC Museums

Paul Pullin East Herts Council

Greg Macdonald Broxbourne Council

Keith Hoskins Vibrant Towns Partnership

Gary Oliver Watford BC

Maria Marion Watford BC

Andrew Gibson Watford BC

Keith Brown Visit Anglia

Mathew Russell Watford Palace Theatre

Geoff Caine Leisure Services, Stevenage

Ian Morton SLL

Lesley Wake Henry Moore Foundation

Paul Upham/Nick Denham Creative Hertfordshire

Gill Worgan West Herts College

Annie Brewster Mayor of St Albans, Portfolio holder for Leisure, Sport & Tourism

Eric Snell/Richard Marrett Herts Hoteliers Association

Dan Dark/Sarah Roots Warner Bros

Helen Rowe Marriot Hotels

Stephen Hein The Grove

Alessandro Convertino/Marlene Mason

Sopwell House

Robin Hindley West Herts College

John Keating Brocket Hall

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Governance of the Hertfordshire Tourism Proposal Hertfordshire Tourism will become a company limited by guarantee with its own governance policies and procedures and will be a separate, subsidiary, company to Hertfordshire Chamber of Commerce. The chairman of this new company will have a seat on the Board of Hertfordshire Chamber of Commerce. The company will be based at: 4 Bishops Square, Hatfield, Hertfordshire AL10 9NE The basic governance policies and procedures will be incorporated in Articles of Association of this subsidiary company. Once approval is gained from Hertfordshire County Council (HCC) and the Local Enterprise Partnership (LEP) an interim board will be appointed with an interim Chair with the objective of determining the actual board and Chair composition within the first 3 months. Certainly the decision to appoint a full time chair should be made by the actual board. It is envisaged the Board will be no more than 11 in number made up of a balance across major stakeholders. Two board seats will designated to, one for HCC and one for the LEP should these parties wish to take that up. The board with be supported by an Advisory Council made of a large number of stakeholders in the County of Hertfordshire. Their opinions will form one part of the Board agenda of this new company, in other words their voice will form part of the overall strategy of the company. A company board member should sit on the Advisory council or possibly chair it. Initially it is envisaged that the new company board would meet monthly eventually moving to bi-monthly. The Advisory Council would meet quarterly. The term of appointment of board members including the chair would be on a term basis with one term = 3 years and two/three terms possible with re-appointment subject to ratification at an Annual General Meeting (AGM) The board will form sub committee's in with sound governance principles Audit / Financial Committee monthly Remuneration Committee every six month

(Executive and salary and company bonus) Nomination Committee When required (Appointment Executive Director and Board Directors based on skills sets and gender balance) Other committees could be formed such as: Health and Safety and HR Hertfordshire Chamber of Commerce would supply procedures in terms of HR, Insurance and so on The board responsibilities such as fiduciary duties, business plan sign off and so on will follow the guide lines set out by the Institute of Directors (IoD) and references made in the IoD Directors Handbook which will be given to board members on their appointment.

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Appendix 1 BACKGROUND 1.1 Tourism is a thriving sector that brings considerable revenue to the

Hertfordshire economy, £2.06 billion annually based on the 2010 Value and Volume research data. Tourism is set to be the fourth fastest growing sector in the UK and in England. It is predicted to grow in real terms by 3% per year between 2010 and 2020 (Deloitte & Oxford Economics, 2010). It is recognised that high quality tourism activities can enhance the quality of life to all our communities, by improving and adding value to the local economy. The visitor economy is an important contributor to the economic future of the County.

1.2 In the LEP‟s Strategic Economic Plan tourism and the visitor economy

has a clear part to play in how Hertfordshire is promoted and perceived by residents, visitors, businesses and investors. The LEP recognises that our county is unique with historic towns/cities, beautiful countryside and fantastic connectivity. It is recognised that the growth of London represents a significant economic opportunity for Hertfordshire. London residents can enjoy their leisure time in Hertfordshire while international visitors to the capital can be attracted into the county which all creates economic benefits. It is very important how Hertfordshire is promoted as a place to visit, live or work.

1.3 A review of Cultural Tourism in Hertfordshire was carried out by Tom

Fleming of Creative Consultancy and presented to the LEP Board in January 2014. It concluded that Culture already has a significant economic impact, and has the potential to contribute significantly more as Cultural Tourism is currently assessed as underdeveloped and under connected.

In 2013 the LEP jointly commissioned with the Arts Council a review of the economic impact of cultural tourism. The findings demonstrates the current value of our cultural offer and the potential it has as a driver of economic activity, innovation, skills, jobs and attracting inward investment to the county. It clearly shows how culture can contribute to the LEP‟s three main priorities:

Nurturing science based Enterprise& Innovation

Harnessing our relationships with London

Re-invigorating vibrant towns for the 21st Century Culture and creativity needs to be at the heart of a fresh approach to

place-making. Our urban centres (particularly our New Towns) are not functioning well and it is recognised that culture and tourism can play a key part in urban renewal. The review provides a fresh evidence base for culture which can potentially help form the basis of collaboration, partnership and future investment from public, private and third sector organisations. The findings of both reviews suggest the need for a

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new strategic, business-led board and modest capacity to support activity.

1.4 The Hertfordshire Tourism and Leisure Partnership, chaired by the

Hertfordshire Chamber of Commerce, was established in 2000. It works with representatives of visitor attractions, hoteliers and other related tourism and leisure businesses, University of Hertfordshire and Local Authorities to oversee promotion of Hertfordshire as a visitor destination and foster a co-ordinated approach to marketing across the county. The Partnership has developed the Enjoy! Hertfordshire brand for its activities.

1.5 The County Council provides the majority of financial support to the

partnership equivalent to £100k per annum. Only 3 District Councils – St Albans, Dacorum and East Herts have dedicated tourism posts. In other districts the function is part of other Economic Development or Town Centre Management roles. Other partners provide support in kind and contribute towards the costs of specific campaigns/events.

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Appendix 2 THE DESTINATION MANAGEMENT REVIEW 2.1 In November 2012 the Hertfordshire LEP and the County Council

jointly commissioned consultants to carry out a review of the visitor Economy in Hertfordshire and to develop a Destination Management Plan.

2.2 The review found:

Hertfordshire is very well located for tourism – particularly business tourism and short stay tourism – on the doorstep of London and close to key motorway links and airports.

The county has a lot to offer in terms of visitor attractions, a rich cultural and historical offer, high quality and accessible countryside, attractive towns and villages. The Film and TV sector is an important tourist niche in Hertfordshire.

Hertfordshire has a wide range of visitor accommodation with over 17,000 bed spaces and hotel occupancy rates of approximately 60%. The spread of accommodation is uneven across Hertfordshire with a lack of provision/shortage in some areas. Self-catering accommodation and Bed and Breakfast accommodation is weak.

Hertfordshire has a relatively low profile in tourism terms compared with other counties but with some very well know attractions such as St Albans, Hatfield House and Knebworth House. Watford, St Albans and Hatfield have the highest visitor orientated “hit rates” on Google in the county.

Hertfordshire hosts just under 2m staying tourist trips and 18m day visitors in 2011. The number of trips has remained fairly level over the last 3 years.

Of those “staying visitors”, 60% are visiting friends and family and 20% are on business. 17% are on “short breaks”. Business tourism is proportionally more important in Hertfordshire than England as a whole.

Total expenditure associated with tourism in Hertfordshire is £747m. The contribution of tourism to the Hertfordshire economy is £0.67bn or 2.4% of GVA, lower than the England average of 3.47%.

Hertfordshire has the third highest tourism GVA amongst the Home Counties, behind Kent and Essex, but above Cambridgeshire, Surrey, Bucks, Bedfordshire and Berkshire.

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47,000 jobs in Hertfordshire are estimated to be associated with tourism, food/drink & leisure sectors.

There is a 25m potential resident catchment within two hours‟ drive of Hertfordshire.

2.3 The review also found the resources and capacity of the current

Partnership was weak; there is a lack of a clear strategy, little research and monitoring; promotional work is not strategic.

2.4 The review identified the following priorities for future action:

1. Promoting Hertfordshire - Developing a Hertfordshire brand to provide a unified

approach to campaigns and individual destination marketing plans.

- Identify target markets and thematic campaigns - Develop an online marking strategy and media relations

strategy - Carry out Market research to inform priorities and actions. - Develop and co-ordinate events to maximise potential

impact.

2. Having the right product - Enhance the amount, quality and range of visitor

accommodation. - Enhance the development and quality of the local attraction

offer. - Enhance skills in customer service, hospitality and

visitor/tourism management. - Promote tourism as a career for young people and those

currently unemployed - Provide support for start-up businesses in tourism sector.

3. Creating the experience

- Enhancing access to attractions with better public transport, cycling and walking routes

- Improving and maintaining public health and toilet facilities - Improving signage and local tourist information - Supporting local cultural events, local markets - Investing in town centres and the countryside

4. Managing tourism in Hertfordshire

- Establish local destination management boards in each district and prepare local tourist plans.

- Create a tourism partnership for Hertfordshire including representatives from the tourism business community, HCC, LEP and Districts.

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- Establish a new private sector group representing all business interests concerned with tourism.

- Establish a strengthened tourism executive team of 3 posts and operational budget possibly hosted by the Hertfordshire Chamber of Commerce and Industry.

- Establish clear set of PIs for tourism and monitor progress/performance of the strategy.